New Tax Regime – How Much You Owe On Rs 6 lakh To Rs 21 lakh Salaries ?

Finance Minister Nirmal Sitharaman announced a new tax regime slab during the Union Budget 2025-26 presentation, raising the income tax exemption limit to Rs 12 lakh. This major reform aims to ease the tax burden on salaried individuals, encouraging them to save more, invest wisely, and boost overall financial well-being.

Let us take a closer look at how the new tax slabs differ from the previous ones.

Income	New Tax Regime Slabs
Rs 4 lakh	No Tax
Rs 4 lakh- Rs 8 lakh	5 per cent tax
Rs 8 lakh - Rs 12 lakh	10 per cent tax
Rs 12 lakh - Rs 16 lakh	15 per cent tax
Rs 16 lakh - Rs 20 lakh	20 per cent tax
Rs 20 lakh - Rs 24 lakh	25 per cent tax
Above Rs 24 lakh	30 per cent tax

Income	Old Tax Regime Slabs
Up to 3 lakh	No tax
Rs 3 lakh - Rs 7 lakh	5 per cent tax
Rs 7 lakh - Rs 10 lakh	10 per cent tax
Rs 10 lakh - Rs 12 lakh	15 per cent tax
Rs 12 lakh - Rs 15 lakh	20 per cent tax
Above Rs 15 lakh	30 per cent tax

Biggest Relief : No Tax On Rs 12 Lakh Salary

One of the most significant benefits promised under the new tax regime slab was no tax on a salary of up to Rs 12 lakh.

Let us break this down with an example of an individual who earns Rs 12 lakhs annually.

For the income up to Rs 4 lakh - Zero tax

For income between Rs 4 lakhs and Rs 8 lakhs - Rs 20,000

For income between Rs 8 lakhs and Rs 12 lakhs - Rs 40,000

Total tax - Rs 60,000

However, under the new tax regime, the tax rebate eliminates this Rs 60,000, meaning the effective tax payable is zero for individuals earning up to Rs 12 lakh annually.

In contrast, under the old tax regime, an individual with the same Rs 12 lakh salary would have paid Rs 1,72,500 in taxes. This significant reduction highlights the benefits of the revised tax structure.

What Is Your Tax Liability On Rs 6 Lakh Salary ?

For these calculations, no deductions have been considered in either the old or the new tax regime. All taxes are computed on the basis of the gross annual salary only.

New Tax Regime - Nil

Old Tax Regime - Rs 23,400

What Is Your Tax Liability On Rs 9 Lakh Salary ?

New Tax Regime - Nil

Old Tax Regime - Rs 85,800

What Is Your Tax Liability On Rs 13 Lakh Salary ?

New Tax Regime - Rs 26,000

Old Tax Regime - Rs 1,95,000

What Is Your Tax Liability On Rs 17 Lakh Salary ?

New Tax Regime - Rs 1,30,000

Old Tax Regime - Rs 3,19,800

What Is Your Tax Liability On Rs 21 Lakh Salary ?

New Tax Regime - Rs 2,14,500

Old Tax Regime - Rs 4,44,600

These changes in the tax slabs mark a positive step towards reducing the financial burden on salaried individuals, and making financial management more efficient.